Josip Juraj Strossmayer University of OsijekFaculty of Economics in Osijek

Lower level organizational units

Chair of Finance and Accounting

Place

Osijek

State

Croatia

Scientific field, discipline, subdiscipline

SOCIAL SCIENCESEconomicsFinance

Study programme type

university

Study level

graduate

Study programme

Financial Management

Academic title abbreviation

mag.oec.

Genre

master's thesis

Language

Croatian

Defense date

2017-09-25

Parallel abstract (English)

Forex is an electronic market that meets the supply and demand of many participants who carry out currency exchange operations for various purposes. By buying and selling a currency electronically, participants create the price of all global currencies, but they affect the economy of the country whose currency they trade. Forex trading is no longer reserved for large financial institutions as it is a focal point where every individual can at least partly leverage their assets by selling and buying available world currencies. The theoretical background of this paper aims to consider the main features of the Forex market, to present market terminology in more detail and to explore more thoroughly the fundamental and technical indicators of the market. The purpose of this paper is to assess the effectiveness of the selected indicators and their impact on price movements in the EUR/USD currency pair. The analysis will be carried out on the charts with Japanese candlesticks in monthly and weekly time frames. The results will give an insight into the movement of the observed currency pair over the years and at the same time which factors of fundamental analysis have most influenced the mostly negative EUR/USD trend and why not all processed technical indicators are usable on the observed currency pair. For a sound analysis, it is essential to understand the rules and rule with broad knowledge, and then indicators can only be useful as a useful tool for predicting future trends in the currency market.